Why Are Billionaires Selling Shares of Their Companies?

By: Anneken Tappe · February 27, 2024 · Reading Time: 2 minutes

Dumping Shares

Three of America’s most prominent business leaders have been unloading shares of their respective companies over the past few months.

Meta’s (META) Mark Zuckerberg sold $400 million worth of stock in the final months of 2023, while Jeff Bezos sold Amazon (AMZN) stock worth an estimated $8.5 billion in February alone. Jamie Dimon, CEO of JPMorgan (JPM), unloaded roughly $150 million this month as well. Investors watching might wonder, do they know something we don’t?

What Does This Mean?

First things first, these stock sales were well telegraphed ahead of time, which is common when it comes to executives of publicly traded companies. After all, executives know what’s going on inside their companies but cannot trade based on that information. Hence the scheduled offloading of shares.

It’s also worth remembering that in spite of the big tickets sales, all three still hold a lot of stock, and only sold a small fraction.

What’s left then is to look at how the stock of Meta, Amazon, and JPMorgan has been doing lately. All three companies’ share prices are up significantly year-over-year: JPMorgan by 30%, Amazon by nearly 90%, and Meta by a whopping 186%. With such eye-popping gains, part of the reason for the big sales may just have been about freeing up some cash.

Read more reporting here .

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